Indirect Loan Averages Close Among CUs, Banks
In at least one case, banks and credit unions are nearly tied when it comes to the average rate on five-year, indirect new auto loans.
According to rate tracking firm Informa Research Services, credit unions had an average rate of 8.37% compared to 8.38% for banks as of Nov. 13. The indirect loan average applies to those who have credit scores between 625 and 640.
Credit unions are ahead of banks by a few points in other five-year, indirect loan categories. The average rate for those with credit scores between 680 and 719 was 4.38% at credit unions and 4.71% at banks for the period tracked.
There was a 21-point difference for those with credit scores between 650 and 679. The average five-year, indirect loan rate at credit unions was 6.26% and 6.47% at banks.
Still, overall, credit unions continue to offer lower rates on new, five-year auto loans, with the average rate being 3.53% compared to 4.94% at banks, according to Informa. For used, auto loans with terms between two and four years, the average rate at credit unions was 3.72% and 5.25% at banks.